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DBP eyeing to raise P5-billion from bond issuance


State-owned Development Bank of the Philippines (DBP) is targeting to raise a minimum of P5-billion from its second issuance of Peso-denominated Bonds from its P50-billion bond program, which is aimed at financing development projects in priority sectors, a top official said.

DBP President and Chief Executive Officer Emmanuel G. Herbosa said that the Bonds, which will have a tenor of two years, will be offered to the public from 24 November 2020 until 4 December 2020 and have an interest rate of 2.500%, subject to adjustments of the offer period.

“Even before the onset of the pandemic, we already planned to raise additional funds from our bond program to augment our funding requirements as DBP pushes to lend more to its priority sectors, especially in the wake of pandemic and the recent typhoons that have struck the country,” Herbosa said.

DBP is the seventh largest bank in the country in terms of assets and provides credit support to four strategic sectors of the economy – infrastructure and logistics; micro, small and medium enterprises; environment; social services and community development.

In 2019, DBP raised P18.125-billion in Sustainability Bonds from the initial tranche of its programmed P50-billion bond program, proceeds of which were exclusively used to fund projects on economic inclusion; climate change mitigation and adaptation, natural resource conservation, and pollution control and prevention and other social development initiatives.

Herbosa said that proceeds from the second issuance will be utilized for renewable energy projects, green buildings, clean transportation, energy efficiency, pollution prevention and control, and climate change adaption projects, among others, under the bank’s Sustainable Financing Framework, as well as for other projects in line with the bank’s mandate.

He said other eligible projects include affordable basic infrastructure and houses, as well as initiatives that promote access to essential services, employment generation, food security, as well as socioeconomic advancement and empowerment.

“Our successful issuance of Sustainability Bonds last year has further strengthened our resolve to support endeavors that have an impact not only on communities but also on our environment,” Herbosa said.

DBP First Vice President for Corporate Finance Francis Nicolas M. Chua said last year 83 percent of the proceeds were allocated to 15 projects in sustainable and renewable energy, while the rest was allocated for water supply and health care projects.

He said this year’s fund-raising activity will further enable the bank to support and spearhead projects in line with its development goals and allow DBP to reach a wider network of stakeholders especially in the countryside.

“Apart from offering a safe haven for investment especially during uncertain times, the bonds also provide the public an opportunity to partake in the larger goal of nation-building,” Chua sad.

Standard Chartered Bank has been assigned as issue manager while joint lead arrangers and bookrunners are Standard Chartered Bank and China Bank Capital Corporation. Selling agents for the offer, other than DBP, are Amalgamated Investment Bancorporation, China Banking Corporation, China Bank Capital Corporation and Standard Chartered Bank. Interested investors may visit any DBP branch nationwide.